5 Amazing Tips To Pay Off Mortgage Faster In Canada
Paying off your mortgage sooner can save you money in the long run. Here are the top five strategies for paying off your mortgage faster.
Source: Freepik
Staying under debt makes any investor more risk-prone to increasing cash flow problems in a country like Canada. Paying off a mortgage should be at the top of the list for any investor.
Mortgage payment policies have certain flexibilities, yet they are also rigid in terms and policies. Taking all these factors into account, an investor should consider the tips to pay off debts at an easy and quick rate.
We have listed down five easy-to-apply tips to help all Canadian citizens pay off their mortgage and debt at a fast rate.
1. Choosing to pay in a lump sum amount
While paying off any debt, an investor should choose to pay in a lump sum amounting to 10 or 20 percent of the initially invested amount. By choosing to offer in lump-sum, an investor saves on the future interest costs. Pumping in any extra earned income will help to clear off the mortgage faster.
2. Renewing with the same payment terms
When a lender renews a specific mortgage contract, the investor can get a lower interest rate while keeping the same payment terms. With a reduced interest rate, the investors can even reduce their recurring payment obligation.
3. Increasing the amount of payment for each installment
An investor pays $850 and can amp it up to $900 or $1000 to speed up paying off the debts. However, once you opt for it, you cannot go back to lowering the amounts of payment.
4. The amortization period trick
The amortization period refers to the specific time frame within which an entire mortgage amount needs to be paid off by an investor. In Canada, the maximum amortization fixed period you can get is 25 years. But an investor should try to pay off their mortgage amount earlier than this fixed period. This tip helps in saving as well as reducing the debt burden off the shoulders of an investor.
5. Adapting to weekly payment method
One of the wisest tips to pay off the mortgage at a faster pace for any investor is to adapt to a weekly payment system. A weekly payment system helps save a fair amount of money compared to the monthly payment system. A weekly mortgage payment system may look easy but can help you save a fair amount on a mortgage investment.
To conclude, mortgage payments can be stressful until you pay the entire mortgage amount in full. Thus, every investor should try to pay off the mortgage within a specific time frame.
With that, we have reached the end of the five simple yet effective ways to help any investor pay off their mortgage amounts faster.
